Australia to Review ACCU Reforestation Method, Including Pongamia Use — OPIS

The Australian government has appointed a consortium led by Midway Ltd. to remake the Reforestation and Afforestation Australian Carbon Credit Unit or ACCU method, with a mandate to assess the inclusion of Pongamia trees, Assistant Climate Change and Energy Minister Josh Wilson said Wednesday.

Pongamia is a medium-sized, fast-growing oilseed tree with applications in renewable diesel supply chains. The review will consider its use in reforestation projects, including timber and oilseed production as a potential feedstock for biofuels.

Midway is already involved in a Pongamia biofuel pilot with Rio Tinto in North Queensland.

Rio Tinto has been increasing the use of biofuels as part of its fuel mix to reduce fossil diesel consumption and associated emissions. The miner has converted two U.S. operations to renewable diesel over the past year and has expanded its engagement in the biofuels market, including in Australia.

Wilson cited technical complexity and differing stakeholder views as causing delays in ACCU method development, pointing to past workstreams such as the Integrated Farm and Land Management method, which has faced extended development timelines amid ongoing consultation and design challenges.

The Reforestation and Afforestation method, closed as of Sept. 30, 2025, has issued a total of 259,562 ACCUs, according to official data. Each unit represents one metric ton of carbon dioxide equivalent.

OPIS last assessed spot ACCU Generic at A$37.35/mt ($26.64/mt) on Wednesday.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Lujia Wang, lwang@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com

(END) Dow Jones Newswires

May 21, 2026 03:37 ET (07:37 GMT)